Also known as excess of loss ratio reinsurance. This is a form of excess of loss reinsurance which provides that the reinsurer will pay some or all of the reassured’s losses in excess of a stated percentage of the reassured’s premium income in respect of its whole account or a specified account, subject (usually) to an overall limit of liability which may be expressed as a percentage of the relevant premium income or an amount.
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REINSURANCE,REFERENCE: See: Aggregate Excess of Loss Reinsurance or Excess of Loss Ratio Reinsurance.
Tag: RAW
Stop loss reinsurance (Reinsurance)
Reinsurance under which the ceding insurer is covered for the calendar year. The amount of coverage is determined by the losses incurred by the ceding company in a calendar year.
Stop Loss Reinsurance or Stop Excess of Loss
An aggregate excess of loss reinsurance that provides protection based on the total claims, from all perils, arising in a class or classes over a period. The Excess Point and the Upper Limit are sometimes expressed as a percentage of cedant’s premium income rather than in monetary terms, e.g. cover might for a claim ratio in excess of 110% up to a limit of 140%. Where this form of reinsurance exists in practice, it is usual for the cedant to be required to retain a proportion of the risk in the reinsured layer called the coinsurance proportion, to avoid any moral hazard. Also, refer “Reinsurance, Aggregate Excess of Loss.”
Stop loss treaty
See: Excess Of Loss Ratio Treaty.
Stop-loss attachment point
Place where the stop-loss insurance company assumes liability.
Stop-loss insurance
Type of insurance coverage purchased by an employer to limit the losses under a self-insurance medical plan. Two types are specific stop loss and aggregate stop loss.
Stop-loss insurance (Health Insurance)
A kind of reinsurance taken by a health plan or an employer plan funded by the employer. The plan covers the plan for losses over a certain amount. This is done on a case by case basis or a total basis over a certain time frame.
Stop-loss provision
Clause in a health insurance policy that states the insurance company will pay 100% of the insured’s eligible medical expenses after the insured has met a certain amount of expense (coinsurance).
Stop-loss reinsurance
Reinsurance purchased to protect an insurance company (cedent) against an aggregate amount of insurance claims over a specific time period. This type of plan does not cover individual claims.
Stopgap endorsement
Provides employer liability coverage for work-related injury arising out of incidental operations or exposure in the states that have monopolistic state funds.